Analyzing Catalyst Pharmaceuticals (NASDAQ:CPRX) & Organogenesis (NASDAQ:ORGO)

Catalyst Pharmaceuticals (NASDAQ:CPRX) and Organogenesis (NASDAQ:ORGO) are both medical companies, but which is the better business? We will compare the two companies based on the strength of their earnings, valuation, risk, institutional ownership, dividends, profitability and analyst recommendations.

Risk and Volatility

Catalyst Pharmaceuticals has a beta of 0.69, suggesting that its stock price is 31% less volatile than the S&P 500. Comparatively, Organogenesis has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500.

Profitability

This table compares Catalyst Pharmaceuticals and Organogenesis’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Catalyst Pharmaceuticals	37.63%	39.24%	34.21%
Organogenesis	-1.30%	4.01%	2.06%

Analyst Ratings

This is a summary of recent ratings and recommmendations for Catalyst Pharmaceuticals and Organogenesis, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Catalyst Pharmaceuticals	0	1	7	2	3.10
Organogenesis	1	1	2	0	2.25

Catalyst Pharmaceuticals currently has a consensus target price of $32.67, indicating a potential upside of 34.71%. Organogenesis has a consensus target price of $8.00, indicating a potential upside of 35.46%. Given Organogenesis’ higher probable upside, analysts clearly believe Organogenesis is more favorable than Catalyst Pharmaceuticals.

Valuation and Earnings

This table compares Catalyst Pharmaceuticals and Organogenesis”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Catalyst Pharmaceuticals	$491.73 million	6.06	$163.89 million	$1.72	14.10
Organogenesis	$482.04 million	1.55	$860,000.00	($0.12)	-49.22

Catalyst Pharmaceuticals has higher revenue and earnings than Organogenesis. Organogenesis is trading at a lower price-to-earnings ratio than Catalyst Pharmaceuticals, indicating that it is currently the more affordable of the two stocks.

Institutional & Insider Ownership

79.2% of Catalyst Pharmaceuticals shares are owned by institutional investors. Comparatively, 49.6% of Organogenesis shares are owned by institutional investors. 10.4% of Catalyst Pharmaceuticals shares are owned by company insiders. Comparatively, 33.0% of Organogenesis shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Catalyst Pharmaceuticals beats Organogenesis on 12 of the 15 factors compared between the two stocks.

About Catalyst Pharmaceuticals

Catalyst Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients. The company develops Firdapse for the treatment of MuSK antibody positive myasthenia gravis and spinal muscular atrophy type. It has license agreements with BioMarin Pharmaceutical Inc.; and collaboration and license agreement with Endo Ventures Limited for the development and commercialization of generic Sabril tablets. The company was founded in 2002 and is based in Coral Gables, Florida.

About Organogenesis

Organogenesis Holdings Inc., a regenerative medicine company, develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Novachor, a chorion membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, cytokines, and growth factors; NuShield, dehydrated placental tissue covering amnion and chorion membranes for spongy/intermediate layer intact; and PuraPly AM, an antimicrobial barrier that enables conformability and fluid drainage. Its products also include FortiShield, a biosynthetic wound matrix for use as a temporary protective covering; PuraPly MZ, a micronized particulate version of PuraPly for the management of open wounds in the surgical setting; and CYGNUS Dual, a dehydrated placental tissue preserved to retain the ECM scaffold. The company's pipeline products include ReNu, a cryopreserved suspension used to support healing of soft tissues; PuraForce, a bioengineered porcine collagen surgical matrix for use in soft tissue reinforcement applications; and TransCyte, a bioengineered tissue for the treatment of partial thickness burns. It serves hospitals, wound care centers, government facilities, ambulatory service centers, and physician office through direct sales representives and independent agencies. Organogenesis Holdings Inc. was founded in 1985 and is headquartered in Canton, Massachusetts.